Last week, the Department of Finance released details on how periods 8, 9 and 10 of the CEWS program will work.
- The maximum base subsidy rate will be set at 40% for these periods, and the maximum top-up subsidy rate would remain at 25%;
- Instead of using the current three-month revenue-decline test for the top-up subsidy, both the base and top-up will be determined by the change in an eligible employer’s monthly revenues, year-over-year, for either the current or previous calendar month;
- For employers using the alternative revenue-decline test (announced on April 8, 2020), both the base subsidy and the top-up subsidy will be determined by the change in an eligible employer’s monthly revenues relative to the average of its January 2020 and February 2020 revenues; and
- The wage subsidy program will include a “safe harbour” rule applicable from September 27 to December 19, 2020. This rule will entitle an eligible employer to a top-up subsidy rate that is no less than it would have received under the three‑month revenue-decline test.
Should you have any questions or feedback, please reach out to myself or the team. As always, we are here to help and support you.